Is Outsourcing Always The Best Option?

Opinions

Date: 26.04.2018

A lot of businesses are turning to outsourcing to solve their money flow issues. The consensus is that outsourcing will always save you money and perhaps we should start by dispelling this notion completely. Outsourcing, may not be the answer to your money troubles. Indeed, it’s quite common for outsourcing companies to charge far more than it would actually cost to hire someone in your business or even find a freelancer. Why is this?

Think of it like purchasing a package holiday. Theoretically, package holidays should be simpler and cheaper, but typically you’ll pay a premium for that simplicity. The company offering the package is charging you the extra for the time it took to put that package together. The same is true for outsourcing. You could be charged extra because business owners know how enticing the possibility is. Let’s look at some other issues with outsourcing.

Less Control Over Your Company Model

When you outsource, you don’t always have full control over issues like quality or indeed sustainability. You might be interested in keeping your business as sustainable as possible. But who’s to say the outsourcing business shares that goal. If you have been marketing your company as sustainable and you use a service that isn’t, this could impact the perception customers and clients have of your business. Remember, they won’t know you’re outsourcing so to them, it will just look like you were being deceptive. This is one of the worst things you can be in the eyes of clients. You can learn more about keeping customer trust on sites like HBR.org.

There’s another issue with the lack of control as well. You don’t know how they are handling your company projects or jobs. They might be completing it themselves or they could be outsourcing the work that you outsourced to them. At this point, you’re paying one business and getting a different level of service from another. This can bring issues with quality control.

No Stability

Let’s say that you are running an international company, shipping products all over the world. To keep things simple and cheap, you’re outsourcing shipping. Suddenly though, the service that you’ve been using shuts down. Now, you have no way of delivering your products. This will never happen if you don’t outsource. You can invest in the bulk carriers from sites like Nautisnp, you can hire the staff that will handle deliveries, and you can make sure that you always have the resources necessary to fulfill your orders. In other words, you won’t be massively reliant on a company that could fail you at any time.

Building Your Business On Sand

One of the benefits of using outsourcing services is that you keep your business small and flexible. But, that does mean that you stunt your business growth. Any business growth that you do implement is somewhat artificial because the surfaces you are using aren’t part of your company at all. If you want your business to have longevity on the market, you must be willing to invest in staff, equipment and everything else that you won’t have when you outsource. Don’t forget, smaller companies are often less attractive to investors.

We hope you find this info useful and realize now why outsourcing may not always be the best option for a sustainable company.

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